Banks used to have the right to issue receipts for the gold they held in reserve in warehouse.
This right was taken away from them by the institution of central banks. (1)

Gold sales are therefore down by 30% in the Kingdom of Saudi Arabia. (2)

And the Saudi banks have to raise the provisions
(reserves?
no, they cannot issue receipts for the gold they hold in reserve)
for bad for loan losses. (3) (4)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Roland Leuschel and Claus Vogt, “Das Greenspan Dossier, Wie die US-Notenbank das Weltwährungssystem gefährdet. Oder: Inflation um jeden Preis”, www.finanzbuchverlag.de, 2006, 3rd ed., p. 299

(2)
Saudi gold sales down 30%
Saudi Arabia: 2 hours, 48 minutes ago
http://www.ameinfo.com/204636.html

(3)
Saudi banks raise loan loss provisions
Saudi Arabia: 4 hours, 27 minutes ago
http://www.ameinfo.com/204612.html

(4)
Kingdom’s banks increase provisions for loan losses
Souhail Karam | Reuters
Thursday 23 July 2009 (30 Rajab 1430)
http://www.arabnews.com/?page=6§ion=0&article=124811&d=23&m=7&y=2009
If the link does not work, try
http://www.arabianbusiness.com/562730-saudi-banks-up-q2-loan-loss-provisions
SNIP
RIYADH: Two large Saudi banks sharply increased second-quarter provisions for loan losses compared to a year ago, official data showed on Wednesday, amid concerns over the solvency of some debt-laden private Saudi firms.

Update 1 links “genus” (1) to intrinsic value

If money does not have intrinsic value, the buyer is devouring the seller’s wealth when he gives something of no value in exchange for the seller’s wealth.

This means that the seller should beware and make sure he receives something of value for the good or service he gives to the buyer.  (2)

Roman law said that “res perit domino” (the thing is lost to owner) but that “genera non pereunt”  (generic goods cannot be lost).

If money is not a generic thing, then it can be lost and the issue of reserve currency can arise.

If money were again a generic thing with intrinsic value, it could not be lost and the issue of reserve currency would never arise.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

(1)
“Genus” (sort),  genitive “generis”,  is the Latin noun from which the adjective ”generic”  is derived

http://www.archives.nd.edu/cgi-bin/lookup.pl?stem=genus&ending=
genus (1) -eris , n. [birth, descent, origin; race, stock, family, house]; hence [offspring, descendants; sex]; in gen., [class, kind, variety, sort]; in logic, [genus]; of action, etc., [fashion, manner, way].

(2)
“Caveat venditor”  (let the seller beware) is a counter to “caveat emptor”, (let the buyer beware) and suggests that sellers too can be deceived in a market transaction says Wikipedia, verbo  “Caveat emptor”
http://en.wikipedia.org/wiki/Caveat_emptor
where it also says that:
Generally “caveat emptor” is the property law doctrine that controls the sale of real property after the date of closing.